The introduction of GST Bill India is a revolutionary step in the economy of India. GST bill has been introduced in country after 13 years efforts. The proposal to introduce GST Bill was presented in the reports of Kelkar committee. It was introduced in the parliament as 101 bill. The GST bill is in action since July 1, 2017. Goods and services tax is a kind of indirect value added tax which unifies the whole nation and makes India a unified and consolidated market.
What is GST bill?
From the manufacturer to the consumer, GST is the single tax imposed on the supply of goods and services. By merging a majority of central and state taxes into a single tax, it would lessen the cascading affect and double taxation effect and would create a common national market for all. With the introduction of GST Bill, the goods produced in India would become competitive in domestic and international market. Also it is said that it would help to check the inflation rate and keep the economy of country in balance. The agriculture sector would be away from this tax and it would not include the essential agricultural products like food grains and other products. It is estimated that the GST bill would reduce the tax burden approximately 25%-30%. This tax is system is very transparent in nature and can be administered easily. The centre and state have levied the GST tax on it is respective tiers. Central Excise duty, additional excise duty, service tax, countervailing tax, special additional duty of customs are the taxes levied at central level and Value Added Tax/Sales Tax, entertainment tax, central sales tax, entertainment and octroi ,entry tax ,purchase tax, luxury tax and taxes on lottery, betting and gambling at state level.
Advantages of GST bill
1. GST is a very clear and transparent tax and also decreases the burden of indirect taxes. It will reduce the registration cost of retailers and the business cost will come down. The competition will increase, exports will also increase.
2. It will help to channelize all the sources of income for Government; it excludes income and petroleum tax.
3. Under this bill, the Goods and Services tax will fairly divide the burden of tax among manufacturing and services tax.
4. This bill scraps all the diverse taxes all the various taxes like octroi, state sales tax, central sales tax, turnover tax and many others. Starting and carrying out a business will not be an expensive and difficult task.
5. It will boost economic growth and accelerate the GDP growth. Also, there is a relief to middle class families as it will control inflation and keep the price in check.
Disadvantages of GST bill
1. If you are planning to buy a new house then you might not be happy with the arrival of GST bill, this bill will incur 7% more cost than the previous cost. Now for buying a new house you need more money.
2. It has been predicted that with this bill around 12% of the demand for new houses would decline as people might not afford such an increase.
3. Also few economists have said that this bill is nothing new but an old one with a fancy name, like CGST, SGCT and IGST are the same taxes given to Central Excise tax, Service tax.
With the introduction of GST the products produced in the Indian market would competitive both internationally and domestically. The government would be easily administer this tax because it is clear and transparent in nature, and more primarily it would encourage economic growth by exporting more Indian products in the international market, hence there would be a sustained economic growth for India.